Attached files
| file | filename |
|---|---|
| 8-K/A - Panache Beverage, Inc. | panache8ka3.htm |
| EX-99.1 - Panache Beverage, Inc. | ex99_1.htm |
| EX-23.1 - Panache Beverage, Inc. | ex23_1.htm |
| EX-99.2 - Panache Beverage, Inc. | ex99_2.htm |
| EX-10.6 - Panache Beverage, Inc. | ex10_6.htm |
Exhibit 99.3
PANACHE BEVERAGE, INC.
Pro Forma Condensed Combined Financial Statements
For the year ended December 31, 2010
Index to Pro Forma Condensed Combined Financial Statements
| Page | ||
| Introduction to Pro Forma Condensed Combined Financial Statements | 2 | |
| Unaudited Pro Forma Condensed Combined Balance Sheet | 3 | |
| Unaudited Pro Forma Condensed Combined Statement of Operations | 4 | |
| Notes to Pro Forma Condensed Combined Financial Statements | 5 |
| (1) |
PANACHE BEVERAGE, INC.
Introduction to Pro Forma Condensed Combined Financial Statements
The following unaudited pro forma condensed combined financial statements are presented to illustrate the estimated effects of the merger of Panache LLC (“Panache”) by Panache Beverage Inc (“WDKA”) (the “Transaction”) on the historical financial position and results of operations of WDKA.
The pro forma balance sheet as of December 31, 2010 is based on the audited balance sheet of WDKA, and the audited balance sheet of Panache as of December 31, 2010. The pro forma statement of operations for the year ended December 31, 2010 is based on the audited statement of operations of WDKA for the year ended December 31, 2010, and the audited statement of operations of Panache for the year ended December 31, 2010.
The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2010 assume that the Transaction was consummated on January 1, 2010. The unaudited pro forma condensed combined balance sheet as of December 31, 2010 assumes the Transaction was consummated on that date.
The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what the financial position or results of operations of WDKA would have been had the Transaction occurred as of the dates indicated, nor is it indicative of the future financial position or results of operations for any period of WDKA.
The pro forma adjustments are based upon available information and certain assumptions that the management of WDKA believes are reasonable under the circumstances.
These unaudited pro forma condensed combined financial statements should be read in conjunction with the accompanying notes and assumptions and the historical financial statements and related notes of WDKA and Panache.
| (2) |
PANACHE BEVERAGE, INC.
Unaudited Pro Forma Condensed Combined Balance Sheet
As of December 31, 2010
(Stated in US dollars)
| WDKA | Panache LLC | Pro forma | |||||||||||||
| As of | As of | Pro forma | combined | ||||||||||||
| Dec. 31, 2010 | Dec. 31, 2010 | adjustment | Total | ||||||||||||
| ASSETS | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 100,398 | $ | 29,776 | (40,398 | ) | C | $ | 89,776 | ||||||
| Accounts receivable, net | — | 226,669 | 226,669 | ||||||||||||
| Inventory | 13,050 | 96,190 | (13,050 | ) | C | 96,190 | |||||||||
| Prepaid expenses | — | 1,334,079 | 1,334,079 | ||||||||||||
| Total current assets | 113,448 | 1,686,714 | 1,746,714 | ||||||||||||
| Property and equipment, net | 2,167 | 1,723 | (2,167 | ) | C | 1,723 | |||||||||
| TOTAL ASSETS | $ | 115,615 | $ | 1,688,437 | $ | 1,748,437 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ | — | $ | 245,811 | $ | 245,811 | |||||||||
| Notes payable | 2,303 | 93,137 | (2,303 | ) | C | 93,137 | |||||||||
| Loans payable - related parties | 5,000 | 322,298 | (5,000 | ) | C | 322,298 | |||||||||
| Consulting fees payable - related party | — | 52,751 | 52,751 | ||||||||||||
| Accrued interest | — | 41,781 | 41,781 | ||||||||||||
| Other current liabilities | 19,775 | 333,462 | (19,775) | C | 333,462 | ||||||||||
| Total current liabilities | 27,078 | 1,089,240 | 1,089,240 | ||||||||||||
| Long-term debt | — | 183,500 | 183,500 | ||||||||||||
| Total liabilities | — | 1,272,740 | 1,272,740 | ||||||||||||
| MINORITY INTEREST | — | 1,472,388 | 1,472,388 | ||||||||||||
| STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||
| Common stock ($.001 par, 200,000,000 shares authorized, 4,914,500 shares issued and outstanding at December 31, 2010 and 22,354,500 shares subsequent to) |
4,915 | — | 17,440 | B | 22,355 | ||||||||||
| Additional paid in capital | 263,061 | — | (241,184) | A, B, C | 21,877 | ||||||||||
| Common stock warrants | 15,768 | — | 15,768 | ||||||||||||
| (Accumulated deficit) | (195,207) | (1,056,691) | 195,207 | A | (1,056,691) | ||||||||||
| Total stockholders’ (deficit) equity | 88,537 | (1,056,691) | (996,691) | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ | 115,615 | $ | 1,688,437 | $ | 1,748,437 | |||||||||
| (3) |
PANACHE BEVERAGE, INC.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the year ended December 31, 2010
| WDKA | Panache LLC | Pro forma | Pro forma | |||||||||||||||||
| Year ended | Year ended | adjustment | combined | |||||||||||||||||
| Dec. 31, 2010 | Dec. 31, 2010 | total | ||||||||||||||||||
| Revenues, net | $ | 1,860 | $ | 798,680 | (1,860 | ) | D | $ | 798,680 | |||||||||||
| Cost of goods sold | 1,125 | 491,513 | (1,125 | ) | D | 491,513 | ||||||||||||||
| Gross profit | 735 | 307,167 | 307,167 | |||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Advertising and promotion | — | 2,067,051 | 2,067,051 | |||||||||||||||||
| Consulting | — | 347,725 | 347,725 | |||||||||||||||||
| Professional fees | — | 91,800 | 91,800 | |||||||||||||||||
| General and administrative | 17,850 | 336,835 | 354,685 | |||||||||||||||||
| Total operating expenses | 17,850 | 2,843,411 | 2,861,261 | |||||||||||||||||
| Income (loss) from operations | (17,115) | (2,536,244 | ) | (2,554,094) | ||||||||||||||||
| Other income (expenses) | ||||||||||||||||||||
| Interest expense | (529) | (57,687) | (58,216) | |||||||||||||||||
| Total other expenses | (529) | (57,687) | (58,216) | |||||||||||||||||
| Income (loss) from operations and before non-controlling interests | (17,644) | (2,593,931) | (2,612,310) | |||||||||||||||||
| Less: loss attributable to non-controlling interests | — | 2,173,112 | 2,173,112 | |||||||||||||||||
| Net (loss) income | (17,644) | (420,819) | (439,198) | |||||||||||||||||
| Pro forma income per share | N/A | N/A | $ | (0.02) | ||||||||||||||||
| Number of Shares Affected by the Transaction | N/A | N/A | E | 22,354,500 | ||||||||||||||||
| (4) |
PANACHE BEVERAGE INC.
Notes to Pro Forma Condensed Combined Financial Statements
| A = On August 19, 2011, WDKA entered into a Plan of Exchange with Panache and filed an 8-K. The Panache members acquired the majority of the outstanding common stock of WDKA. The transaction is accounted for as a reverse purchase acquisition/ merger wherein Panache is the accounting acquirer and WDKA is the legal acquirer. Accordingly, the accounting acquirer records the assets purchased and liabilities assumed as part of the merger and the entire stockholders equity section of the legal acquirer is eliminated with negative book value acquired offset against the paid in capital of the accounting acquirer. |
| B = To subsequently record 17,440,000 new common shares issued to Panache members pursuant to the Plan of Exchange. |
C = Eliminate WDKA assets and liabilities due to recapitalization. |
D = Eliminate revenues and costs in connection with WDKA revenue-producing activity. |
E = The denominator in computing pro forma earnings per shares is 22,354,500 shares, representing outstanding shares affected by the transaction per 8-K above. |
| (5) |